headlines from around the globe, first we look at germany. it's rebounded with gdp growing a surprise 0.5%, but the picture isn't expected to be so rosie for the eurozone as a hole. >> and out of france, the first challenge for francois hollande. >> and foreign imports have slipped as investors shy away on concerns about growth. >> plus facebook reportedly set to hike the price for its ipo thanks to huge demand as a new poll finds the majority of

people think the social networking giant is just a passing fad. so warm welcome to the program. we kick off with italy. surprise number from germany first thing this morning. >> grew much stronger than expected in the first quarter. >> contraction of minus 0.8%, annual contraction of minus 1.1%. the good news if there is any is that the fourth quarter is unrevised down. so contracting the third consecutive quarterly decline in activity, the steepest

contraction for three years. the data weaker than expected, as well. >> look at the composite figures. so far we've learned germany was much stronger than expected in the first quarter, france was just about flat. but it did avoid recession. >> and it comes on top of the spanish data which was weaker than expected, as well. we'll get -- >> hollande is being inaugurated as president. gorgeous pictures there. this comes as we've just been discussing france's comment all but stagnant in the first quarter. you can see the tough challenge he has before him.

>> moody's has downgraded 26 italian banks as the country struggled with recession. it includes cuts in debt and deposit ratings. joining us today is michael brown. good to see you. your reaction to the data this morning. growth numbers for both italy and germany. >> they've had a significant build up in inventories and stocks as the auto enter has been gearing up for production. you can see it in the bmw figures. we straightforward. germany is functioning because -- >> that even boosted u.s. growth in the first quarter. >> you need to make the sales. you can't keep the level going.

it's part of that cycle that you get that seasonal al cycle that you get when you have a highly productive manufacturing based economy. >> doesn't bode well pot rest of the eurozone then. germany continues to truck along and you're saying it's just a blip that doesn't bode well. >> the ifo numbers have continued to be strong which means that it could well keep chugging along quite happily. remember, expectations for growth this year, you've just done it in the first quarter. so you don't have to do very much to beat expectations. but it's not about germany. it's about italy and spain. >> outperformer against the peripheral indices. long dax and short spain, probably close that trade out now. >> it depends on what happens in greece and the amount of contagion that comes lieu.

and at the end of the day, the question is how big is the firewall if in europe to offset any contagion. we've got about 18 months worth of money to keep italy and spain out of the bond markets. is that enough. geithner doesn't think it is. >> good to have you on. plenty more to come. also on the show we'll be in paris. >> and we'll break down the data out of china. >> plus we speak to a market strategist who says he's worried about the current level of are profit margins. find out why. >> and delaware's governor joins us live from his home state as the debate over regulation intensifies in washington. >> a last attempt to form a

technocrat government. there is speculation greece will be forced to call fresh elections. carolyn is still in athens. if they reject the technocrat government, is there enough of an agreement elsewhere to be able to form one? >> not really. the leader of the democratic left says creation of a technocrat tick government would be a defeat of politics, but still the leaders will be joining the president for talks later on take, that's happening at 2:00 a.m., unless we get an agreement on the continue know crass tick government. the question is what happens in between, whether a technocrat government will actually lead us to new leaks elections and whether that's in june or later in the fall. just about half an hour ago, they said it will pay out the

bond. this was an international law bond which was not part of the debt swap pinlized last month. and again, this was a very tricky decision to make because had it not been paid out, greece would have secretarily defaulted on its debt and it would have likely triggered a wave of litigation. but now it will be paid out will international law bond. back over to you. >> carolyn, thank you. >> if there's one stock to keep an eye on, look at delarue. hitting a 52 week high. why are we looking at delarue? they're a making of physical currency. if greece leaves the eurozone, it may need a lot of drachma to

print and will company may be able to play that role. just something to keep an eye on. very speculative. >> in the past, people have taken the note to the previous denomination, ripped off a number and stamped it with a letter of whatever currency you want to be. so actually there may not be as much nand as peop much demand as people anticipate. >> and we've seen other shows discussing this. >> who makes stamps. right. there we go. and actually can we get a better -- grexit i never likeded. >> we'll ask our twitter followers on suggest a better name, but i think it's already stuck. >> euro group president dismissed speculation of a greek exit banning such talk as

nonsense and propaganda. officials are meeting again today in plus sells with talks. changes will affect over #,000 financial institutions in europe next year. karen is in brussels for us. on the one hand, talk of leaving the euro is a mistake, but there are plenty of other officials saying about it greece doesn't play ball, they will be forced out. >> there was support to remain, but there is also precursor saying solidarity is a two way street and this is up to greek politicians to do their bit and stick to the bailout measures to try to prove that they also are a key player of the eurozone. so that message coming through

loud and clear. you also mentioned spain. this was interesting because a lot of time was spent on this debate. there was a sense of welcoming the reforms that took place at the end of last week. this is to set aside an extra 30 billion euros in provisions and use high rate loans from the government also to split away some of the assets if on a separate real he is say the vehicle. but the urgency around spain is growing and you can see the spike in spanish bond yields yesterday. so we did sort of see this measure that we want to see some outcome for spain and immediately the way that the euro group wants to take place is through some independent evaluation of the toxic stuff sitting on the balance sheet. take a listen. >> we call on the spanish authorities to speed up the assessment of the situation in the banking sector and to take the necessary steps to put it in place mechanisms that can be

used in case of need. indeed in the current circumstances, speed is of the essence. >> commentary coming out is many think spain has done a lot of work already and this will take time to play out and many think there's much more work on be done. last time around, this time discussion went for 18 hours and the police was just on how the capital adequacy should look. writ continue and sweden want flexibility to increase their level of provision, but many people this would feel the rest at a disadvantage. as spain sets aside more and more provision, you wonder how it can meet other requirements and tap the cash it needs. >> absolutely. karen, thanks for that. michael is throwing up his hands. >> exactly the point i've just

made. if the bont markets say i don't know who is next so i'm not going to lend to anybody at all that eat bigged old handle. >> they still don't have must have money to cauterize the system. >> i don't think it will be the european system that will kick greece out. i think it will be the imf who continue to make contributions every quarter who will say, no, you no longer meet the requirements that we've sat down, we no longer have the political agreement, we are not giving the cash this quarter. >> and that could lead back to its original name. >> hell exit. >> held owing l of an exit.

>> that's it. grexit is gone. >> spanish banks are reportedly working on a merger. talks are being supervised by spain's ministry of economy. this is coming after the government just had to departmentize its third biggest member. >> you will notice a bit of a difference from yesterday. instead of just 20 stocks in the red, the majority is in the green. so a little less than 8:2. gdp number certainly helping out this morning. but michael brown saying that's

illusionary. we're focused on european banks. down grading 26 banks. all have a negative outlook, but unicredit actually up right now. as are the rest of major banks. bond markets have bounced off the exceptionally low yields we hit yesterday. ten year till with a 1.47. ten year italian yields a little bit higher. ten year spanish yields still very elevated. o.a.t. yields just slightly higher at 2.84% as we hollande to be inaugurated. aussie dollar trying to bounce off the five year low one has we got. dollar-yen still in the ranges. euro sterling below 80 as you can see.

we preached that yesterday. sterling still looking barely strong. and euro-dollar 1.2853. fresh four month low yesterday. spot got 1516. just trying to trend down a little bit this morning. that's where we stand during the asi asian -- european session. but what about asia? tracey chang is following that. >> a mixed picture today. the greater china markets closed today on two separate notes. shanghai composite lost about a quarter percent. hang seng snapped it eight day losing streak ending the day up about 0.9%. lifted by large caps such as oil

refiners. the nikkei fell about 0.8% to a 3 1/2 month low weighed by exporters after greece struggled to form a coalition government. foreigners continue to sell local stocks for the tenth straight session. aussie market lost about 0.7%. and over in india, the sensex trading in the green at the moment. and here is the trading picture in asia. back over to you. >> thanks for that. now also here in europe, the stronger than expected gdp number. tomorrow we'll wribring you

silvia's interview with merkel. >> and speaking of merkel, the press corps is a buzz everyone wants to know who is angela d. merkel, the spoof twitter account. >> do you know who an la d. merkel is? >> if i knew that i would be making so much money on betting right now because this is what's been occupying this press room during the long hours that we sit here is who is will person. >> are you angela d. merkel? >> i think you need to ask peter. >> who is angela d. merkel? >> it's not me. we were just discussing this earlier today. we're pretty sure it's a britt and possibly someone here tonight, but i have no idea. >> are you angela d. merkel? >> no, i'm not, but she already follows me. so i think it's adequate proof

that it's not mimi. >> it's a mystery. she gets more and more popular. angela merkel's popularity crumbles, but angela d. merkel goes strength to strength.silvi it might be, let us know. you can tweet us @krcnbc wex. still to come, china seeing its longest streak of falling in-flows since the you 2009 global financial crisis, but the data reflects more than just slowing conditions on the domestic front. more when we come back. [ male announcer ] the inspiring story

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hollande being iinaugurated paris. a shot of the flags flying. >> the challenges facing him in

this position with the gd figures and future of the european union in question -- >> no honeymoon periods. >> and at a time when many of the world banks are reeling. japan's top financials are bucking the trend. we want to take a look at what's happening in this change. japan's banks are largely limited in their exposure, but analysts warn the good times could be coming to an end. japanese bank's strongest asset could actually lead to huge losses once the country's low interest rate environment or at this point if the country's low rate environment goes up. joining us for more is director from london. do you think there is really an opportunity for banks here? >> i think there are improvements being seen. we know the demand for nonmanufacturing side is rising

rapidly. and along with expansion and diverse if i indication of japanese manufacturers. however in saying that, if you look at the immediate environment as you were noting earlier, the turmoil you're seeing in overseas is exacerbating the sentiment to invest further. they're holding back and therefore when you look at the growth, most is actually coming from brazilian demand. and the only notable activities of loans that i can see is basically m&a related. >> it's interesting going back to the early '90s, can we still -- can we talk about them still be plagueded with some of the overhang of japan's own crisis? >> actually japan had gone through what the europeans are going through and americans are going through right now 15 years

ago. and it's almost quite interesting that last year it was fj, next year hopefully the group will be for the first time repay i repaying corporate tax for the first time in over 15 years because they've been able to cancel out the deficit against the profit for all this time and thus not paying corporate taxes. he's measures are needed because the bank failure is so much greater because of the structure of japanese style. so, yes r, you can see they're copying almost the japanese methodology. >> do you think the risk is going the japanese way? >> they're already paying tax because the governments have not allowed them to have taxes carried forward. so, no, they're paying tax again today which is a real surprise.

relative to that position. and of course the reissue is whether or not the european authorities will allow the banks to rebuild hair capital base from profits and everything that you see suggests that they will not allow them to make sufficient level of profits to rebuild their capital basis properly anytime soon. >> and if we don't build capital bases quickly, what's the lesson from japan? >> basically as i said maybe the accuseness or awareness member lower here because again in the case of japan, most financing is through indirect financing through the banks and therefore systemic risks are so deep that authorities had to do everything they can to halt this from happening. but of course as the crisis worsens and deepens, as you've been seeing by the government measures which was so criticized in the mints, coming up with a very similar methodology, i

think of course options that were adopted by the japanese banks should be can option for the europeans, as well. >> good to see you. thanks for for that. china's released more grim data suggesting slower growth. trace. >> that's right. china's foreign investment dropped a sixth consecutive month and china drew some $37.9 billion in fdi between january and april and this is down from $38.8 billion in the same period last year. and now analysts are saying that the trend is worrying as the fdi is an important gaming for the health and state of external demand. and needless to say, china's vast manufacturing sector heavily demands on foreign demand. beijing is moving to salvage the drasic slow down in china's economic growth and they decided

on consult the rrr by 50 basis points announced last saturday and will be effect difference may the 18th. but a lot of analysts are questioning how effective these mild and easing measures really would be since more phone in the system to lend does not necessarily translate in to healthy loan demand. but more fdi surely would help. back to you. >> thanks for that. how concerned should we be about china? highway construction down 7%, housing sales down a quarter of a percent in the first quarter. and -- >> and german gdp growth driven by exports. yeah, of course you should be concerned because it has a significant impact on the rest of the globe. states seem to be gathering momentum, but is that's too much of the globe's economy going backward. >> the question is whether chinese authorities, can they come up with suitable stimulus

measures. no point stimulating cuts in reserve requirements if there isn't -- >> let's take a step back and ask ourselves in november and december of will this year, where we will be. well be through the hell exit, well be through the chinese leadership change. and we'll probably be looking at shall radically different policies in place from both of those two areas. the problem is how we get from here to there. >> and how do u.s. equities continue to outperform in this environment. the stock market only down 5% off its recent highs. >> the u.s. seems to have got itself on to a track but of course in the states, we have the opposite question which is the bush tax cuts. >> still to come, facebook reportedly set to hike the price of its ipo, but can the social networking giant deliver revenue growth some just one of the subjects we'll talk about.

the bush tax cuts.

germany rebounds. gdp grows in the first quarter, but the picture isn't expected to be as rosy for the eurozone

as a whole. >> first challenge for hollande being enaugust grein-auaugurate. >> and facebook set to hike its price as a new poll finds a majority of people think the giant is just a passing fad. hollande being inaugurateinaugu. still waiting for the you will say all ceremony to take place. >> and he's meeting with merkel later tonight. yesterday fresh closing lows for the uk and france. you can see we're up slightly today. we got a kick at the open on better than expected german gdp

numbers. italian figures show negative growth of 0.8%. >> and take a look across fixed income bonds. the big story yesterday. and today still incredibly low yields. german bunds 10.7%. in france, we've seen as hollande prepares to take over 2.85%. still a significant difference there between what's going on in germany and france. italy and spain still much higher. italy at 5.9%, spain at 6.26%. >> just worth mentioning, we'll show sterling which is below 80 against the euro. britain's goods trades and deficits largely unchanged in march, but we had a rebound in exports of countries outside the eu. so exports and imports interesting enough at record levels. but first, facebook is reportedly going to hike the price range on its ipo due to enormous demand. the company will seek to raise

up to $12.1 billion sending shares to $38 each. that could value facebook at as much as $102 billion. a new poll finds half of americans believe facebook is just a fad. the seame number also say the price is too high. only 13% trust facebook on protect their personal pore. >> joining us is ceo of wpp. >> who is watching in america at this time? >> everybody is watching. >> between the devil and the deep blue sea. >> would you buy shares in facebook? >> somebody asked me on your program across the atlantic, i think it was becky and joe asked me and andrew asked me. and i said i would buy help for my grandchildren or my nephew. >> are you implying you think

this is a long term growth potential? >> i've got myself into hot water about a year ago saying it wasn't a advertising media, this was a branding medium. and 900 million people complaint be as passing pad. so i'm not sure i agree with your ap poll. i think you're probably using the wrong research company for that. but having said all that it's a self perpetuating situation at the moment. the 100 billion i think was predictable. they priced it a little bit under. there's a momentum that they're trying to build in front of the offering. most believe the retail market are pufsh it up and then it will relax. >> so you wouldn't want to buy those shares for your grandson now? >> but i'm looking at it for the very long view. i'm asking to look at it 15 to 20 years time and see what

happens. >> you made the contrast of twitter. and i think it's about celebrity sat tuesday, whereas facebook is interacting with a smaller more closed group of people. it's a modern form of letter writing at 20 times revenue. >> ad revenue just over $4 billion, but the question is can they trance rate it into mobile devices and how much more of a change can they take out. >> we buy about $75 million of media, probably about $2.5 billion with news corp. we spent about 1.6 billion with google, 200 million with facebook. it this year we're thinking facebook would be 400 million. google is up in the first quarter. facebook was fairly flat against

q1 last year, it was up about 45%. >> so you're hot going to increase your -- >> we probably this year will increase quite significantly, but not as much as we originally thought. >> why? >> because i think comes down to it being a soerl immediacial ne. you interrupt social communication with an advertisement at your peril. >> but you must not see a return on the advertising dollars. >> people don't though yet. so the biggest client i'm aware of on if facebook spends about $125 million. the normal clients spends about 20 to 50 million dollars. 4 billion is about 1% of what we calculate legacy media in america to be worth. so we're talking about very small numbers in the context of the market. twitter, i think we spent $6 million with them last year. so it's very small in relation to -- >> the point is that actually social media, therefore, must be

highly seasonal becausele be much more used around easter and thanksgiving and christmas than any other periods of time of the year. does that make it unusual? >> i think what it is, it makes cnbc more important in the sense that it's a word of mouth recommendation. it's a knock in your face display ad or search. search is much more are targeted. google has a five leg stool from mobile to research on display to video, et cetera. facebook is quite narrowly focused. there radumors that facebook wi introduce a hand set by the end the year. and obviously instragram. paying a billion for a company that started 18 months ago, no revenue, clearly tells you something about where they're going. >> if you want to know just how

facebook makes its money, c mbs goes inside the company. check out facebook the social offering, that will air this thursday at 1:00 p.m. eastern in the states. >> and uk media group the latest victim. voted against the remuneration report at the annual meeting yesterday. you've been on the receiving end of shareholders angst about your level of pay. what do you you make of it? >> last year it wasn't about my pay. it was about a couple of other issues. but our view on it as an institution is quite simple. we don't believe in payment for failure. we believe in payment for success. i have just under 2% of the company on a very significant share. every time the share price rises or falls, i suffer or gain.

85% of my remuneration is variable and success related. i make no apologies for the fact that wpp had a record year last year. and it's about pay for performance in an international context. and the interesting to think about what we're talking about is iss for example, the proxy service which advises institutional shareholders on proxy votes, has a totally different set of standards in america. i think you see this on your channel. the debate about pay in america is a very different one and the standards high or low are very different ones than the standards a applied here. so it's very different and the shareholders here is much more active. we know the government is introducing legislation. they're concerned about transparency and about payment for failure. and i think the government is worried about payments on

termination. i for example are at will. i have no contract with the company whatsoever. >> we did want to get the latest pictures here of francois hollande being inaugurated. >> and what are your hopes for hollande or fears? >> well, it's difficult. reflecting on what may or may not happen if we're shifting from austerity to stimulus, then somebody will apply the brakes. p. >> just very quickly, we mentioned black rock is behind a lot of the uprising against remuneration. is there any risk that we look back and see this as a mistake? >> i wouldn't want to say necessarily that they're getting it wrong and we're getting it

right. you could argue it's long overdue in many cases and the question is why were people not putting controls, doctor would the shareholders not revolting in 2007 when rbs proposes the most ridiculous deal of all time and they sat there and did nothing. so i think much of this this is a reaction and reflection of past mistakes. and it's quite obviously the case. >> does that make it wrong? >> no, it's just a question of actually -- >> saying we were wrong before. >> the key is to keep remuneration variable not fixed, and we are moving to a more fixed based remuneration basis which cannot be good for long term corporate health. >> and there will we go. hollande being inaugurated as the french president. how big is his task, michael? >> it's not an election i would like to win.

he has time in his presidency to try to get it right over the next few years. >> he has to win an election, as well, which is very important. >> so he won't do very much in front of that but post that, he has time to get it right. in the same way as the coalition here had a five year run. >> going into the election, he was pretty strong in his messaging. how easy is to put those messages out and shift and not -- >> people are saying his bark is worse than his bite. we'll have to see whether that comes to play. the markets may well discipline hollande's administration to do things that perhaps during the course of the election campaign he indicated he wasn't prepared to do. >> i think it's the most enormous amount of spin coming out of the french socialists that says don't believe a word we said in the campaign.

the best case scenario is already discounted and that's quite dangerous. >> one reason why people were looking more favorably as risk assets is because they saw their embrace of pivots -- >> sap point i made last week. and you can see the real underpinning of what -- >> we've had the german core figures today. >> and we should mention in ireland, they're debate to go vote yes on their own fiscal treaty. >> and we're very focused on europe and americans are focused on europe. this time next year or earlier next year we'll be focused on america. post the election in america, then the microscope will shift to looking at the deficit in america.

>> where do you see china, india? >> china showing no signs of slowing. i don't know what may was like. so we've seen no signs of -- now, you have to remember that the five year plan is about a shift to consumption from savings. you have to remember that this is health care, social security safety net and last but not least, an emphasis on services. so we're benefiting sort of l three ways. and we're seeing a shift to consumption in china and india and brazil. >> should i be concerned there are german dealerships with 30% discounts on them and large numbers of stock that aren't shifting?

>> certainly it's under pressure. it's not as good as it was. but i think gdp growth, we're seeing our business grow at twice that level. so we're not seeing a slow down yet. that doesn't mean that it might not be coming, but certainly not to date. >> we appreciate your thoughts. so much going on this morning. >> we're being outdistanced by the french elections. may not be the first. >> as you k scan see, hollande being inaugurated and stefane is there. >> does he get the nuclear codes now or in five minutes?

>> it's done. sarkozy left the palace and hollande is now in charge. he's attending a ceremony within this building behind me. he's expected to announce the name of the new prime minister and it's likely to be head will of the social list group. good knowledge of germany any. he speaks german. it will help to rebuild the relationship. due to fly later in the day to meet with merkel. officially the first diplomatic contact, the first time that the two leaders will meet in real life, but of course we are expecting them to discuss the crisis in europe and to express

the different view. angela merkel is likely to explain that a there is no other option than austerity and he'll explain why he believe has we should set up a growth agenda at the european level. at that point merkel clearly said that the fiscal compact in europe will not be renegotiated. with that, back to you. >> thanks very much for that. good to see you this morning. we'll come back to on you facebook, as well. we'll leave with you some shots of the new french president. ♪

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hollande has been inaugurated and this is his speech. he'll be meeting with angela merkel this evening for his first -- >> what do you think will be said? send us the images. >> congratulations and then what will they say and then post that important meeting, angela merkel is speaking to silvia wadhwa and we will have that interview, as well. >> i expect that it will be the first meeting that will be held in german. >> do you think he would even if he could do it in german, do you think he would? >> absolutely. >> we'll ask silvia about that. and meanwhile, moody's has downgraded 26 italian banks. we just got figures out confirming that italy's economy contracted quite sharply in the

first quarter. claudia is with us. how do the growth figures add to worries about the country's banks? >> well of course will they do in fact. the market is turning around just a bit now in negative territory on the heels of the gdp number has did show a decline of 0.8% in the previous quarter in terms of decline in growth and 1.3 versus the first quarter of 2011. these are numbers that are worse than what we're expecting, so they're affecting how the market is working out today. but what's to mote, we need to digest the moody's cut on the 26 italian banks. expected to beat consensus of 720 million euros for that net profit. and as far as their corporate results, the numbers are panning out well. in fact banco profit chimed.

what do they have i to say about the motives behind will the down grades? first of all the economic weakless continues. and remember, monti is implementing a program that is increasing taxes and is also changing pensions. as far as the second motive, loan loss provisions are the concern for the future for these italian banks and lastly, access to market funding. so the concerns for the future is what's pushing mood ymoody's. >> michael, give us the trade idea right now. >> you'll see tonight angela and francois debate the growth stability pact. i don't think what we have at the moment will be retained. it has to be postponed, put off, there is a new wind of change. it is about the amount he

government's dispense. the austerity programs will be postponed. there will be more expenditure by government. have a year, have a couple of years. so underneath that at some stage, will are two trades, one is you probably don't want to own the euro because it will go an awful lot weaker. and secondly, you need to be careful about some bonds because clearly there is going to be an inflationary push which will come through. there will be a laxity of fiscal and -- >> won't it ultimately support the euro because real rates will be higher? >> on have inflation, you have to have wages rising in excess of inflation. labor has no bargaining power except in germany. >> did you worry that that will actually take some of the urgency away from the kind of -- >> absolutely. remember spain and italy, the

same size as germany economically. so if they're collapsing and germany is doing fine, overall the eu growth figures wi s wils negative. >> six month view? >> hell up then and after six months, it could get very interesting indeed. >> all cash? >> no, balancing the books. but the key element here is a weaker euro, better exports, is the bond market going to hold those levels. we have fiscal stimulus coming through, more monetary stimulus pl we'll throw the kitchen sink at euro to get it moving. >> does asian and u.s. growth hold up? >> u.s. is its own story.euro t. >> does asian and u.s. growth hold up? >> u.s. is its own story.'s und. and china should be the flip side. should be a relaxation, as well. so it's very interesting once we get to november. but getting to november is going to be tough. >> all right. michael brown, fund manager

coining terms with us this morning. really enjoyed it. thank you so much. >> hell exit. there has been a charge of perverting the course of justice. sky news reporting that. more on that in a few moments time. plus still to come, facebook set to mcthe price of its ipo, but would you buy the stock? we'll discuss more. [ male announcer ] the inspiring story

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welcome to "worldwide exchange." >> headlines from around the world, germany rebounds. the picture isn't as rosy for the eurozone as a whole. >> and hollande addresses the sfrench after beiof french after being inaugurated. >> foreign in-flows have slipped as nervous overseas investors shy away on concerns overgrowth. >> and facebook set to hike the price for its ip ochl thanks to huge demand even though a new poll find as majority think the social networking giant is just

a fad. >> 44 versus 40.7 in april. you can see the euro has strengthened. we're trading at a 1.58. gdp as a whole flat year on year versus the forecast for a contraction. so somewhat better picture than expected. no surprise led by strength and still the biggest economy which is germany. unfortunately below the surface, not such a pretty picture and we'll see how markets digest and

react to that news. >> meanwhile let's give and you look at what's coming up today in the united states. april retail sales, cpi due out at 8:30 eastern. consumer prices forecast to remain unchanged last month. but rise 0.2% when you strip out food and energy. at 10:00, home builder sentiment as well as march business inventories. and on the earnings, look for results from home depot, tjx and saks before the opening bell. >> and we're green today. we were red for the last several trading days. but today dow jones would be opening about 55 points higher, the nasdaq same hinthing, up ab 14. of course this follows an ugly day in the markets in u.s. and especially across europe yesterday.

we're barely down for the day on the global 300. investors look below the surface as michael brown indicated, that german gdp growth led by exports may not be sustainable. >> very good point michael made. nevertheless, the fact of the growth number out of germany means that we have tried to pull back some of those heavy losses from credit. it this is where we stand. we have come back from the earlier gains. ftse 100 just up 8 points. remember, we had two% losses and fresh closing loans for the uk and fremp market. xetra dax fairly nat. ibex how downeye ibex town down. banks all downgraded between one and four notches.

bank shares reacting this morning. bond market, not far from the record lows. italian yields are higher. contraction of 0.8%. three con secretary could you have difference quartconsecutiv italy. ten-year gilt, 1.about 89%. dollar-yen steady. euro below 80. euro-dollar above the four month low we hit last night. jamie dimon faces shareholders today as it holds

its annual meeting in florida. reports say the board backing dimon and the way he quickly apologized for the $2 billion trading loss and sought to fix mistakes. president obama says jpmorgan's loss i also straights the need for wall street reform. he says the same type of error in a less stable bank may have prompted the government to step in. in frankfurt in trading early this morning, jpmorgan shares are down about a percent. that's in line of what we're seeing across the market, with you ibut investors still expressing concern. and we'll speak to delaware governor who says bank regulations should be treated with a scalpel, not an ax. and we have a slew of economic data out in the u.s. consumer price index will top the agenda and our next guest says the drop in gasoline prices will limit inflation going forward. this is paul dales from capital economics. paul, welcome.

>> good morning. >> so inflation is going to be in focus in the u.s. what kind of picture do you expect here? are we stagflation, inflation, deflation? >> i think we're in a process of disinflation where we'll see the annual headline rate fall quite sharply the next few months. not so much today. >> what kind of numbers are we talking about, what might happen over the next couple months? >> i think we'll see a small rise of 0.1% month on month, but i wouldn't be surprised to see a small fall in may's data which might be even 0.3% decline and i think that will take the annual growth rate down there about 2.7% in march to maybe even below the 2% mark. so we're seeing a sharp fall in headline inflation. >> and that could give the fed more cover to act if it felt it was needed. >> it's a little bit more complicated than that because

the fed is more interested in core inflation. we've seen broad money growth accelerate and vacancy rates have started to pick up again. >> would you xir that to other economies where inflation has been running hotter than expected and say that that's actually telling us that we'res from interpreting the situation? >> i think there is a bit of a danger of that. we have a huge output gap generated by the recession and that means core inflation should drop back sharply. but the little signs mean i'm a little bit concerned that maybe the output gap isn't as big as i thought. >> where do you think core inflation will be at the end of the year? >> i think slightly below 2%, but probably not in the territory that will prompt the feds to launch qe-3. >> will they sit on their hands? >> i think actually. no real urgent need for qe-3 at the moment. now, the big risk of course is what happens in europe.

>> because a lot of people say europe doesn't impact the u.s. a lot. as long as there is no banking crisis apart from that economically, it won't have an enormous impact. does it or not? >> our view is that even if there is a pretty dire turn of events in the eurozone, the u.s. would do okay. but the truth is, no one you willy knows. we haven't been through this before, so there is a real risk that there is another financial crisis in the u.s. we don't think that's going to happen, but we can't discount that risk completely. >> you actually do like u.s. equities. >> we do. we were pretty good on the u.s. at the moment. if you put it in context, they grew at an annualized rate at 2%. the eurozone didn't grow at all. so although the u.s. isn't firing on all cylinders, it's doing much better than elsewhere and i think that will be a big trend this year. contrast in fortunes.

>> an extraordinary position the way the gilt yields have been pushed down. how long is that move down lower yields sustained for? >> i think that could be sustained for as long as interest rates in the u.s. certainly are held at near zero levels. which we think will be another couple years at least. it seems surprising to be saying that ten year treasury yields could remain at 2% or lower for another couple of years. but look at what happened in japan. the policymakers will couldn't raise interest rates and it's not surprising. >> our guest this morning was making the point that some will pay corporate taxes for the first i'm in time in 15 years. a remainder how difficult the process can be. >> when it's a financial crisis, things take longer to repair. and the u.s. is going through that process quicker than certainly europe. the banking sector is stronger and some way towards deleveraging, as well. so the u.s. is getting there, but it will be a slow progress.

>> and slow progress looks great given everything else going on in the world. paul, thank you very much. let's take a look at some of the other stories today. >> facebook will reportedly hike the price range for its ipo today due to enormous demand. the company will seek to raise up to $12 billion selling shares for $34 to $38 each and that could value facebook as much as $102 billion. >> interesting this morning they came out and said he would buy it for his grandchildren long term, he thinks it's a better story. i'm not sure. i would disagree. >> you'd rather get in quick and sell to the next guy. >> foreign direct investment flows dropped 2.4% in the first three months of 2012 compared to last year. marks the longest period of decliningen flow since the global tnks crisis. >> and yet another reason the -- >> goes back to the discussion we had yesterday. going to have to do more.

are we going to get fiscal -- >> at a time when we have a leadership transition going on. echl u set to file a complaint against argentina. the eu will do this because argenti argentina's import restrictions that it deems to be unfair. is it increasingly becoming isolated or at least in south america. >> still the beneficiaries of international aid. >> hiking import tariffs on goods, as well. so two major economies there in south america. >> and moody's just remind you has downgraded 26 italian banks as the country struggles with recession. gdp number this morning came in weaker than expected. three negative quarters. and you now the problem is we know the banks are intertwined with the economy and -- >> it's a negative feedback. as the economy does worse, the banks will do worse. italy hasn't been in the he had

lines so much lately, but you have to wonder if about that won't start to change. >> at the same time as european finance ministers meet in brussels, an unusual question has been buzzing among the convening member of the press. who is angela d. merkel some ? e the spoof twitter account. >> do you know angela d. merkel is? >> if i knew that i would be making so much money on betting because this is what's been occupying this press room during the long hours that we sit here is who is this person. >> are you angela d. merkel? >> i think you need to ask peter. >>. >> who is angela d. merkel? >> it's not me. we were just discussing this earlier today. we're pretty sure it's a britt. and we think it's someone here at brussels, possibly here someone tonight. but i have no idea. >> are you angela d. merkel?

>> no, i'm not, but she or he follows me, so i think that's adequate proof it's not me. >> no one those. i knows. it's mystery. >> merkel's popularity crumbles. but angela d. merkel has strength to strength. >> if you are angela d. merkel, let us know. and there is more than one fake twitter account. there is also queen europe i think it is. just goes to jund scounderscore people can have with this. so get in touch with us. >> a few coming in already. also still to cork we'll be in athens where talks continue, but is greece edging closer to an exit from the eurozone. it's a hell exit. more when we can back.

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t-bill auction, 1.3 billion euros. the yield 4.34%. previously 4.2. bid to cover ratio 2.32.

>> these are your headlines this morning. zero growth in the eurozone the first quarter. north and south divide has widened. germany a surprising strong rebound. >> and facebook could hike the price of its icht po range, but a poll says america's love affair with the site could be waning. >> karen has been following the meeting misbrussels. plenty of comments about whether we should be talking about a greek exit or not.

at the end, is the assumption they'll give more time for countries to meet the deficit targets? >> they're talking about what the capital rule shoes look like, but the impasse last time around meant the session stretched for 18 hours with no outcome. it feels like the eu set a watered down regulation for european banks and the rules it will govern about 8,000 plus lenders across the region. they want flexibility to create information tris balance sheets to protect them against -- wants onset the ratio above the 7% set done by basel iii and it had the

flexibility to go up to 12% or even 15%, but the rest of euro feels this could just exacerbate the veins strains in the system. you see yields spike in much of the banking system. >> okay. karen, thanks very much. that's the latest out of brussels. >> and greece's political leaders due on meet again to -- in a last ditch attempt to form a coalition government. with you they say they will reject the technocrat. >> and it's unlikely that they'll get that. what's interesting is the comments coming out from the leader is that he's almost lowing down gauntlet to the rest of the eu saying you dare throw us out of the eu it we don't fulfill the terms of the bailout package. and starting to see slippage on that. >> you do and you don't.

then you have people saying that talk of greece exiting is prop began today. and can we get a sense of the media coverage here? here is the cover of the guardian. europe's elite braced for greek exit. hear here's another. world braces itself for greek exit. here is the ft, contagion risk. so i don't think this is mere propaganda. we've had reports even that the retailer dixon's -- >> i'm just saying you're starting to see slippage from some comments, saying maybe we'll extend the time frame for the bailout, starting to see slippage on the terms. so just keep your eyes on it. michael brown said it may be the imf that may push the button. >> and coming up, more data for a u.s. retailers is out today. we'll take a look at who is set to report including walmart.

>> plus we'll leave you with a reminder of where we stand on european stocks. just weighted to the up side, but we've lost a little bit of steam. are you still sleeping? just wanted to check and make sure that we were on schedule. the first technology of its kind... mom and dad, i have great news. is now providing answers families need. siemens. answers.

what we need with the wall,

we need the ross sorkin pair value. >> we do, but you have to do it yourself. >> i know, i want the automatic calculation. we've moved on. that's old hack. >> keep an eye on u.s. retailers. the like of target and walmart report later in the week, but first home depot, chlt j max, jcpenney and saks. you can see how they were trading in in frankfurt before the open in the u.s. we're seeing actually a lot of red arrows, so we'll have to decide whether that's related to it this risk off move more broadly or whether there are concerns about the retail sector in particular. joining us now is the ceo of

prologis. tell us what brings you to london. >> we have a significant operation here in europe and the uk, so i make visits here a couple times a year. >> how is business in europe? >> better than you would think. i wouldn't call great, but last quarter, we have increases in rents and occupancies which are actually quite a bit of surprise to most people. >> and where in retail in europe at least is there strength? because it's surprising. you would think consumers are retrenching across the board. >> you would say germany and eastern europe are the strongest areas. >> besides exports, they talked about domestic demand still holding up. and i suppose there it are arguments for wage rises, as well. do you think this is sustainle uptick? >> i do. i think that the uk looks a lot

to me like the u.s. did. maybe 24 months ago. >> is that good or bad shall. >> i think it's good to the sent that the u.s. has now come out of this. >> let's address parts of the u.s. are you seeing strength across the board, are there regional or does it matter the type of retailer type of product? >> first of all, demand for our product is beyond just retailers. and if you want to look at the retail segment, the online retailers are on fire. the online retailers are building a whole new supply chain which drives demand. anything related to housing is still weak. and that accounts for a lot of the smaller users. and that partoperating at a low level. there has been remarkably little construction in the u.s. in the last three or tour yeafour year.

so good companies are reconfiguring their supply chain. and the high quality space is almost gone. >> and your biggest opportunity you think is going to be -- >> u.s. i think is by far the biggest opportunity. we have a great business in japan. and i think our european business will surprise people. it won't be great, but it will do better. >> all right. hangs for coming by t fos k hangs on coming by the studio. and we'll take a look at co it ty which has pulled its offer for avon, but will totally put off the deal. more next.

welcome to "worldwide exchange." >> headlines from around the world today, facebook is reportedly he set to hike the price for its ipo thanks to huge demand even though a new poll says the majority of people find the giant may be just a fad. >> plus growth in the eurozone, north and south divide widens. germany rebounds smaller than expected. >> foreign in-flows in to china have slipped for the sixth straight month. investors shy away on concerns of growth.

>> a warm welcome to viewers who may have just tuned in state side. we'll set you up for your trading day ahead. we got news concerning rebekah brooks, the former chief of news corp uk newspapers. she's been charged with perverting the course of justice. her husband and several others have also been charged, as well. all related to the phone hacking scan dell. >> take a look at what's going on here in the u.s. a sea of green behind me which is a nice change. dow jones about 65 points higher. nasdaq about 16 and the s&p 500 about 6. take a look at what's been happening across europe. some of the better sentiment driven by stronger than expected german growth figures and as a result the ftse cnbc global 300 has this morning rallied to start thing its off. we've since come off, we're just

barely higher for the day and the question really is going to be whether people are encouraged by the growth figures or see them as our guest last hour as maybe an export auto live in one off boom. xetra dax is up about 0.3%. the cac 40 up.0.7%. and spain down about .16. and given how weak trading was yesterday, you never know quite how much to make of these figures. >> absolutely. already excellent of comment from guests this morning. this is just a summary of some of the comments that we've had. >> they'll plant record corn crops, increase their wleet crop

and soybean. there's a lot of expectations on what the yield will be and i'm not buying it and i think that it's not going to come to fruition. >> one thing we picked up on, china and recovery there. i think there's potential for interest there. >> there are two trade, one is you probably don't want to own the euro because it will get an awful lot weaker especially when you get ltro 3. and then you need to be careful about some bonds because clearly there will be an inflation area caution. >> charlie was saying he's buying into the recovery story in china. there's so much amgst about the growth story in china, another

fdi number again this morning. weak europe. nothing going on in the states about. >> and you can't point to china and india as a source of strength. although both of our guests this morning singled out china still -- or strength in china from their consumer base maybe suggesting that the economy is going through -- >> we've seen no indication of a major slowdown yet. i don't know. >> jamie dimon is facing shareholders as jpmorgan holds its annual meeting in florida. reports say the board backs dimon and to the way he quickly apologized for the $2 billion trading loss and sought to fix mistakes. president obama says jpmorgan's loss illustrates the need it for wall street reform. in new york on monday he says the same type of error at a less stable bank may have prompted the government to step in. joining us now is delaware governor jack markel, good

morning, governor. your state's a big employer of a lot of these financial services firms. jpmorgan expected to add jobs there. are you worried about the bank's future? >> good morning. it's good to be with you. i think with a we really want to do here is give the regulators and an opportunity to take look at what's happened. i'm sure there's a lot of interest on capitol hill. i do think that we have to remember that we do want banks to be able to hedge their positions. because otherwise they're never going to lend more money. there's got to be a way for them to manage their risks. >> are you worried that with regulation maybe again after jpmorgan's trading loss more regulation than we thought a couple weeks ago in the months ahead, that that will ultimately push financial services in the u.s. overseas? >> i do think we have to be careful. we obvious willy want -- there's an appropriate level of regulation for sure. a lot has come on over the last couple of years. some of that additional

regulation has actually been helpful, particularly in the sense that banks have had to raise a lot more capital over the last few years. that capital can essentially form as a shock absorber. so i do think we have to be careful because we want to keep as much of the business here as possible. also let's recognize that in the after math of the financial crisis, a lot of that driven by credit card lending, mortgage lend, we continue to do lending and i think the hedges has an appropriate place. >> to be sure, your state does benefit from a lot of what's going on in financial services from a lot of the legal activity around it. you take a harder hit by the financial crisis in the sun belt. are you frankly happy to break up some of the big banks or send them overseas? >> you're right, we do have a strong financial services industry here.

but my view is very much informed by my time in the private sector, as well, and recognizing not just for delaware where we do have a lot of financial services employees, the country needs these banks to be lending. we need a vital and vibrant financial service sector so that money is flowing. so i think we have to be cautious here. >> what's the role of local banks or state backed banks? this is an idea we're trying to get in the uk whether we can get state backed banks. is there a role for having ll ba local banks for local businesses some. >> i think from this perspective i wouldn't say there's a big distinction. we look at it as almost one in the same in the sense that banks provide really important punkss in terms of being places where you can deposit money, places where you can borrow money from. they provide a lot of services, cash management and the like.

and i think with respect to the regulatory scheme, we've got to get it right at all levels. >> you can also address what's going on in terms of tax revenues in your say the tate? meredith whitney warning about a crisis for municipalities. what's the fiscal picture look like for you and what's your biggest concern going forward? >> in delaware, we're more or less flat over the last year. last year there was some additional revenue that came on the table. we like many states had to deal with things like pensions and health care for state employees. we've had to make plenty of cuts over the last few years. i think it's difficult for any state over the future to deal with rising health care costs that continues to be an enormous factor. and one of the challenges of being a governor these days is looking at all of the things that are outside of our control just listening to your program a little bit earlier with respect to the challenges in europe and

the elections there and what's going to happen with the austerity versus growth, what's going to happen with the euro. you were talking just a few minutes ago about whether or not growth in china may be ebbing. these things can have influence on what happens in our country and of course what we have to do is figure out how to deal with so many factors that are outside of our control. >> nevertheless, you have an unemployment rate there 6.9% and the national average is 8.1%. that's despite the closure of auto plants from the likes of gm. what are you doing to bring jobs back to the say ttate? >> we talk to businesses all the time. i've probably visited 750 since i became governor. and what we do is we ask them how can we facilitate your success. and just within the last few months, amazon broke ground on a distribution facility, a million square feet, more than 1,000 employees. we just broke ground two weeks ago, a company called bloom energy, they make fuel cells for

the likes of walmart and google and fedex and apple. their first factory outside of california will be built in delaware. jpmorgan xl pchlt mop morgan xc jobs. and focused on smaller and mid-sized businesses, as well. we have to put ourselves in hair shoes and these days it's so much about talents. >> and the fiscal cliff in the u.s. is a big concern on investors mind. you're a democrat. i assume would like to see president obama reelected. what measures would you support to avoid that cliff or do you think it's time to let the bush tax cuts sunset? >> i think there's a pretty good model out there. i think the simpson-bowles actually laid out a number of pretty good arguments.

and when you get people on both sides, extremes of both sides, a handful of people being able to agree to that is correct i think that's something we'll have to come back to. there is no question a lot of -- there will have to be a lot of give on all sides. so we do have major you issues, but we have to remember we do have to deal with the debt, and we've also got to make sure that we're doing something about jobs in the meantime. it's a pretty tough balance, but one that we'll have to figure out. >> all right, governor markell, we appreciate you getting up to join us. simpson-bowles i expect will be two names that people around the world will need to know. >> absolutely. and some of the other stories we're focusing in on today, moody's has downgraded 26 italian banks as the country struggles with recession. it includes cuts to debt and deposit ratings.

>> in-flows dropped. the denmarks the longest period of declining in-flows since the global financial crisis. >> another negative piece of data out of china. people wondering whether they're trying to avoid a heard landing. plus group on shares surged after turning in their first operating profit in two years. revenue up 89% fp. >> shows shares did really well both before and after that report. >> it means how social media shares do -- all of the same things we've been discussing. coty has pulled its offer for avon products. saying the company took too long to agree to start discussing the deal. it raised its bid last week and

had financing help from berkshire hathaway. . >> can't leave the data at the table too long. if you leave them too long, when you get there, they've gone home. >> lots of tweets in. nathaniel says i know people are getting rid of facebook because they don't like all the advertisements. another viewer from chicago says he wouldn't goes as far as to say facebook is a passing fad, but could it already be beyond the explosive growth phase which is a pretty fair point. >> if you want to join the conversation, get in touch with us. @cnbcwex, you can e-mail us,

we'll put up the address in a second. so defeat us. and defeat us directly, and still to come on the show, hollande has officially been sworn in as president of france. in his first call of duty, a meeting it this evening with angela merkel. ♪ ♪ why do you whisper, green grass? ♪ [ all ] shh! ♪ why tell the trees what ain't so? ♪ [ male announcer ] dow solutions use vibration reduction technology to help reduce track noise so trains move quieter through urban areas all over the world. together, the elements of science and the human element can solve anything. [ all ] shh! [ male announcer ] solutionism. the new optimism. 

if you're just joining us, these are your headlines. zero growth in the eurozone in the first quarter. north and south divide widens. germany rebounds. >> facebook is reportedly set on hike the price of it ipo, but cnbc poll says america's love affair with the site could be on the wayne. >> european stocks trying to recover froms losses. in terms of the break down, let's just show where you we go. construction material the weakest. banks this morning after rallying a little bit now down half of 1%. the focus of course has been on the downgrade today. 26 italian banks.

not a big effect first thing. also been looking at steel stocks, as well. depressing forecast from the likes this morning. down menearly 5%. steel producers painting a pretty grim picture the for steel demand. >> greece political leaders due meet again in another attempt to form a technocrat tick government despite the left wing party sayingle reject such a solution. carolyn shober has the latest from athens. walk us through what's going to happen throughout the rest of the day and on what extent we should expect to go forward. >> it's safe to say the idea of a unity government is officially dead. now as you say the greek political parties are trying to

focus on forming a technocrat tick government, but again, there has been major resistance from the democratic left saying it would be a defeat for politics. so the deadlock continues and new elections are the most likely outcome. and all of this comes as we get a very grim reading for the greek economy. first quarter gdp falling by 6.2%. this follows a drop of 7.5% in the fourth quarter. so, yes, the pace of the decline is slowing, but still this country is in a deep recession and won't get any better with the political uncertainty. >> carolyn, thank you so much. ross. >> meanwhile hollande has been sworn in as frenche traveling t meet with merkel. stefane is at the palace and you can see the president has just left.

stefane, what will be the basis of discussions tonight? the first all-important meeting between the new french president and angela merkel. >> officially it's the first diplomatic contact because angela merkel and francois hollande never met in real life before. we're expecting to discuss the situation in europe. they'll explain to each other their position for angela merkel. fiscal austerity is the only way out of crisis, but hollande believes austerity is not the only option and that european leaders should set up a growth agenda in order to improve the situation in europe. on that point, a spokesperson for the german chancellor already warned that the fiscal compact would not be renegotiated in europe and that only structured reforms could pave the way for future solid growth in europe. back to you, ross. >> thanks very much indeed for

that. we don't get this kind of thing in the uk with the change in minister. >> it's a modest car. a big procession, but very european car at least to my american eye. >> a french car. >> a french car obviously. i still want to know is he going to speak in german to angela merkel tonight? >> he might well. and of course more importantly, tomorrow silvia is sitting down with angela merkel and we will have that interview here on "worldwide exchange." >> and our next guest says the u.s. markets are still on steady grounds. >

a busy agenda in the u.s. we'll focus on april retail sales data and inflation figures out at 8:30 eastern. home builder sentiment at 10:00

and we'll also get earnings reports from home depot, tjx, saks. retail pressures under pressure. take a look at puts. we have some green arrows. the dow up about 60 points. nasdaq up about 14 and a s&p 500 would be up about five. we've actually brought those numbers -- could have something with people seeing through the german growth figures. joining us how is randy bateman. thank fos for joining us. and explain why you have relative optimism about u.s. equities. >> i think if you look at corporate balance sheets and corporate opportunities, i think there will are opportunities this with regard to merger and acquisitions and perhaps some export opportunities. maybe pot to the you'not the eu because their slowdown is taking

place, but certainly the developing nations will need some of the products that we create in this country. and i think that that will be trance terable to an economy that's going to grow maybe 2.5% for the entire year. and we have good valuations on the stock market. >> i'm not sure if mergers and acquisitions is the most encouraging reason. hoping someone else will pay a higher price for them instead of just looking for organic growth. >> unfortunately, we will be in a slower growing economy. i think that will be intrins intrinsically the case. there are a number of converging factors that will point to that. you saw the governor of california yesterday talking about the debt and the kind of unexpected unfunded obligations that that state will have to pace. but that's throughout the world. and you've got all these regulations. our country's only 236 odd years

old and every year we send politicians to washington and to raleigh and austin and tallahassee -- >> what i'm hearing is the the u.s. to you sounds like the best house on a bad block. >> could very well be. >> which argues for of course indices moving flat. best trade idea in that environment? >> you know, i really have looked at what the opportunities exist in will condition and i think you're going to see an awful lot of ag business do well. and that can be transferrable to a variety of different things. not just farmland, but fertilizers and flow control processes, irrigation equipment, hose types of things that will be able to feed a very hungry and growing world. >> randy bateman, getting it in quek f quick for us. that's it for today's show. >> we did it again. coming up next, joe, becky, andrew and the team. we hope you have a profitable day. [ male announcer ] the inspiring story

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good morning. today's top stories. jpmorgan holding its annual shareholder meeting in florida. facebook prepares to raise that price range for it much anticipated ipo plus a flurry of economics. it's tuesday, may 159, 2012 and "squawk box" begins right now. >> welcome to "squawk box" here on cnbc. becky is on assignment today, so we're joined by the wonderful